IndianOil eyes Rs 100 cr solar power plant in green thrust
New Delhi   05-Jul-2010

Flagship refiner-marketer IndianOil Corporation is setting up a grid-linked solar power plant worth about Rs 100 crore at Barmer in Rajasthan, even as the state-run firm sharpens focus on non-conventional energy sources in an attempt to supplement fossil fuels earnings with carbon credits and move towards a green future.

Sources said IndianOil will set up the plant as an equal venture with government-run power equipment manufacturer Bhel. The plant will be set up on a parcel of land belonging to the oil company's marketing division, while Bhel will supply the panels and other paraphernalia. Most of the electricity generated from the plant will be sold to the general grid, while some quantity may be used for captive use.

This is IndianOil's second attempt to find a foothold in green energy and clean up its carbon footprint. According to sources, green energy emerged as a key focus area for the company when its top executives and government officials met in Shimla last week for a brainstorming session on future strategy.

IndianOil has forayed into wind power with Pune-based windmill-maker Suzlon, first reported by TOI. The company is to set up a 25 mw plant at the port city of Kandla in Gujarat at an investment of Rs 130-140 crore. But unlike the Barmer solar project, the Kandla wind plant will power the company's local infrastructure such as storage depots and pump houses along pipelines used for field operations.

The grid-linked solar foray with a grid-size capacity puts IndianOil among the first movers outside the government-run Jawaharlal Nehru National Solar Mission that envisages a total of 20,000 mw solar capacity by 2022. Both wind and solar power forays will also earn carbon credits for the company.

The state-run generation utility has already taken a decision to build up 301 mw solar capacity by 2014. Of this, 190 mw will be harnessed through solar thermal technology, or heating water etc in its power plants, and the remaining 111 mw will be for generating power.